Newmont Corporation · NYSE:NEM
Newmont — Q3 2021 Earnings Presentation
35 slides from Newmont's earnings presentation, Oct 28, 2021
Slide 1: Third Quarter 2021 Earnings
Third Quarter 2021 CREATING VALUE & IMPROVING LIVES Earnings THROUGH SUSTAINABLE, OCTOBER 28, 2021 RESPONSIBLE MINING THIRD QUARTER 2021 EARNINGS NEWMONT CORPORATION 1
Slide 2: Cautionary Statement
Cautionary Statement CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS: This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended
Slide 3: Tom Palmer
Tom Palmer CREATING VALUE & IMPROVING LIVES PRESIDENT & CHIEF EXECUTIVE OFFICER THROUGH SUSTAINABLE, RESPONSIBLE MINING THIRD QUARTER 2021 EARNINGS NEWMONT CORPORATION 3
Slide 4: Third Quarter Highlights
The World’s Leading Gold Company THIRD QUARTER HIGHLIGHTS Delivered solid Q3 performance Delivered gold industry’s first Declared industry-leading and updated 2021 full-year autonomous haulage fleet at dividend of $0.55 per share guidance Boddington for Q3** Produced 1.45M attributable Advancing nea
Slide 5: World-Class Assets in Top-Tier Jurisdictions
World-Class Assets in Top-Tier Jurisdictions World’s Leading Gold Company ▪ Nine world-class assets in top-tier jurisdictions* Musselwhite ▪ Robust gold reserves of 94Moz and 65Moz 20% in GEO reserves* Éléonore Nevada Gold Mines*** ▪ Stable production of average ~8M GEOs* Turquoise Ridge/Twin Creeks
Slide 6: Project Pipeline to Sustain Production into 2040's
Project Pipeline to Sustain Production into 2040’s 7+ YEARS 4 TO 7 YEARS 0 TO 4 YEARS EXECUTION Feasibility Tanami Expansion 2 Definitive Yanacocha Sulfides Peru – Gold (~65%) Copper (~35%) Australia – Gold Ahafo North Pueblo Viejo Expansion JV Ghana – Gold Dominican Republic – Gold Goldrush (NGM JV
Slide 7: Spotlight: Ghana Managing Covid-19 with Resolve
Spotlight: Ghana Managing Covid-19 with Resolve COVID TESTS GOVERNMENT & SCREENING & SECURITY FOCUSED ON THE HEALTH & WELLBEING ADMINISTERED COMMUNITY SUPPORT SUPPORT OF OUR WORKFORCE AND COMMUNITY >7,600 $2.7M $1.4M ▪ Donating three PCR machines to serve Newmont workforce and local communities Test
Slide 8: Updating Full-Year 2021 Guidance
Updating Full-Year 2021 Guidance 2020 2021 UPDATED REPORTING METRIC RESULTS GUIDANCE* Gold price ($/oz)1 $1,775 $1,800 Gold production (Moz)2 5.9 6.0 Co-product GEO production (Moz)3 1.0 1.3 Total GEO production (Moz) 6.9 7.3 Gold Costs Applicable to Sales ($/oz)4 $756 $790 Co-product GEO Costs Appl
Slide 9: Rob Atkinson
Rob Atkinson CREATING VALUE & IMPROVING LIVES CHIEF OPERATING OFFICER THROUGH SUSTAINABLE, RESPONSIBLE MINING THIRD QUARTER 2021 EARNINGS NEWMONT CORPORATION 9
Slide 10: South America Positioned to Deliver Strong Q4
South America Positioned to Deliver Strong Q4 ▪ Merian delivered consistent performance from ore blending strategy; higher grades expected to continue in Q4 ▪ Cerro Negro and Yanacocha continue to manage Covid impacts ▪ Cerro Negro continues to improve productivity and production; progressing future
Slide 11: North America Delivers Solid Q3 Results
North America Delivers Solid Q3 Results ▪ Musselwhite and Éléonore impacted by Covid absenteeism, resulting in lower development and tons processed; executing Full Potential initiatives ▪ Porcupine delivered higher tons mined at Hollinger, offset by less high- grade ore tons mined from Hoyle Pond du
Slide 12: Australia Progressing Growth Projects
Australia Progressing Growth Projects ▪ Tanami delivered solid performance from higher grade mined; lower throughput from Covid-related care and maintenance period in July ▪ Tanami Expansion 2 project progressing; advancing headframe construction and completed 70% of the reaming ▪ Boddington experie
Slide 13: Africa Continues to Deliver Solid Results
Africa Continues to Deliver Solid Results ▪ Akyem generated consistent performance despite heavy rainfall; higher throughput and strong recoveries ▪ Ahafo delivered strong results due to higher tons mined from Subika open pit and higher throughput ▪ Subika underground mining method change expected t
Slide 14: Nancy Buese
Nancy Buese CREATING VALUE & IMPROVING LIVES CHIEF FINANCIAL OFFICER THROUGH SUSTAINABLE, RESPONSIBLE MINING THIRD QUARTER 2021 EARNINGS NEWMONT CORPORATION 14
Slide 15: Financial Performance in the Third Quarter
Financial Performance in the Third Quarter METRICS Q3 2020 Q3 2021 Profit Metrics Realized Gold Price ($/oz) $1,913 $1,778 Revenue ($M) $3,170 $2,895 Adjusted Net Income ($M)* $697 $483 Adjusted Net Income ($/diluted share)* $0.86 $0.60 Adjusted EBITDA ($M)* $1,663 $1,316 Cash Flow Metrics Cash from
Slide 16: Q3 Adjusted Net Income of $0.60 per Share
Q3 Adjusted Net Income of $0.60 per Share GAAP TO ADJUSTED NET INCOME ($/DILUTED SHARE) * $0.10 $0.12 $0.01 ($0.08) $0.46 $0.60 ($0.01) GAAP Net income Loss on assets held Change in fair value Reclamation and Tax adjustments and Other** Adjusted net income from continuing for sale of investments rem
Slide 17: Industry-Leading Dividend Framework
Industry-Leading Dividend Framework ▪ Leading $1.00/share sustainable base dividend ANNUALIZED DIVIDEND PAYOUT $2.80 - $3.70 ▪ Targeting 40% – 60% of incremental attributable Free Cash Flow above $1,200/oz returned to shareholders ▪ Evaluating gold price increments of ~$300/oz $2.20 - $2.80 ▪ Approv
Slide 18: Delivering on Capital Allocation Strategy in 2021
Delivering on Capital Allocation Strategy in 2021 ✓ Delivered first Autonomous Haulage Fleet to gold mining industry ✓ Approved full funds for Ahafo North and progressing Tanami Expansion 2 INVESTING IN ORGANIC ✓ Progressing Yanacocha Sulfides, investing at least $500M through 2022 with a full funds
Slide 19: Tom Palmer
Tom Palmer CREATING VALUE & IMPROVING LIVES PRESIDENT & CHIEF EXECUTIVE OFFICER THROUGH SUSTAINABLE, RESPONSIBLE MINING THIRD QUARTER 2021 EARNINGS NEWMONT CORPORATION 19
Slide 20: #1 Gold Producer with an Average ~8M GEOs Per Year
#1 gold producer with an Proven operating model and Focused on industry-leading average ~8M GEOs* per year deep bench of experienced returns to shareholders with through 2030 and significant leaders with strong track record disciplined capital allocation exposure to other metals through the cycle St
Slide 21: Appendix
Appendix THIRD QUARTER 2021 EARNINGS NEWMONT CORPORATION 21
Slide 22: Updated 2021 Outlook
Updated 2021 Outlooka a 2021 outlook projections used in this presentation are considered forward-looking statements and represent management’s good Newmont 2021 Outlook Updated as of faith estimates or expectations of future production results as of October 28, 2021. Outlook is based upon certain a
Slide 23: Adjusted net income (loss)
Adjusted net income (loss) Management uses Adjusted net income (loss) to evaluate the Company’s operating performance and for planning and forecasting future business operations. The Company believes the use of Adjusted net income (loss) allows investors and others to understand the results of the c
Slide 24: EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA Management uses Earnings before interest, taxes and depreciation and amortization (“EBITDA”) and EBITDA adjusted for non-core or certain items that have a disproportionate impact on our results for a particular period (“Adjusted EBITDA”) as non-GAAP measures to evaluate th
Slide 25: Free cash flow
Free cash flow Management uses Free Cash Flow as a non-GAAP measure to analyze cash flows generated from operations. Free Cash Flow is Net cash provided by (used in) operating activities less Net cash provided by (used in) operating activities of discontinued operations less Additions to property, p
Slide 26: Attributable Free cash flow
Attributable Free cash flow Management uses Attributable Free Cash Flow as a non-GAAP measure to analyze cash flows generated from operations that are attributable to the Company. Attributable Free Cash Flow is Net cash provided by (used in) operating activities after deducting net cash flows from o
Slide 27: All-in Sustaining Costs
All-in Sustaining Costs Newmont has developed a metric that expands on GAAP measures, such as cost of goods sold, and non-GAAP measures, such as costs applicable to sales per ounce, to provide visibility into the economics of our mining operations related to expenditures, operating performance and t
Slide 28: All-in Sustaining Costs
All-in Sustaining Costs Care and Sustaining Advanced Projects, Maintenance Treatment Capital and All-In Costs Research and and Other and Lease All-In Ounces Sustaining Three Months Ended Applicable to Reclamation Development and General and Expense, Refining Related Sustaining (000) Costs Per Septem
Slide 29: All-in Sustaining Costs
All-in Sustaining Costs Care and Sustaining Advanced Projects, Maintenance Treatment Capital and All-In Costs Research and and Other and Lease All-In Ounces Sustaining Nine Months Ended Applicable to Reclamation Development and General and Expense, Refining Related Sustaining (000) Costs Per Septemb
Slide 30: Gold All-in Sustaining Costs - 2021 Outlook
Gold All-in Sustaining Costs - 2021 Outlook A reconciliation of the 2021 Gold AISC outlook to the 2021 Gold CAS outlook are provided below. The estimates in the table below are considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Se
Slide 31: Co-Product All-in Sustaining Costs - 2021 Outlook
Co-Product All-in Sustaining Costs - 2021 Outlook A reconciliation of the 2021 Co-products AISC outlook to the 2021 Co-Products CAS outlook is provided below. The estimates in the table below are considered “forward-looking statements” within the 27A of the Securities Act of 1933, as amended, and Se
Slide 32: Net Debt to Adjusted EBITDA Ratio
Net Debt to Adjusted EBITDA Ratio Management uses net debt to Adjusted EBITDA as non-GAAP measures to evaluate the Company’s operating performance, including our ability to generate earnings sufficient to service our debt. Net debt to Adjusted EBITDA represents the ratio of the Company’s debt, net o
Slide 33: Endnotes
Endnotes Investors are encouraged to read the information contained in this presentation in conjunction with the most recent Form 10-Q for the quarter ended September 30, 2021 filed with the SEC on October 28, 2021, and with the Cautionary Statement on slide 2 and the following notes below. Outlook
Slide 34: Endnotes
Endnotes Reserves Estimates: The reserves stated in this presentation were prepared in compliance with Industry Guide 7 published by the United States SEC and represent the amount of gold, copper, silver, lead and zinc that we estimated, at December 31, 2020, could be economically and legally extrac
Slide 35: Endnotes
Endnotes Adjusted Net Income is a non-GAAP metric. Adjusted Net Income per share refers to Adjusted Net Income per diluted share. See appendix for more information and reconciliation to the nearest GAAP metric. Free Cash Flow. FCF or Free cash flow are used herein is a forward-looking statement and